Preparing Matching and Processing Receipts PDF

TVET PROGRAM TITLE: Accounts and Budget Support Level –III
MODULE TITLE: Preparing Matching and Processing Receipts

LEARNING OUTCOMES:
At the end of this module the trainer will be able to;
LO1: Receive, identify and record receipts

LO2: Match receipts to documentation
LO3: Enter data to systems
LO4 : File documentation
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Contents
LO1: Receive, identify and record receipts ............................................................................ 3
What is Receipt ........................................................................................................................... 3
Store receipts ............................................................................................................................... 3
Manual receipts ........................................................................................................................... 4
Types of Receipt.......................................................................................................................... 4
Recording and Depositing Cash Receipts ................................................................................... 5
LO2: Match receipts to documentation ................................................................................. 11
Understanding the Receiving Process ....................................................................................... 11
Document ...................................................................................................................................... 16
LO3: Enter data to systems ...................................................................................................... 17
Cash Receipts Procedure ........................................................................................................... 17
Chart of Accounts...................................................................................................................... 18
Defining Accounts ................................................................................................................. 19
Account Order ....................................................................................................................... 19
Understanding Manual Receipts ............................................................................................... 27
LO4 File documentation ............................................................................................................. 29
Step 1. Understand the Scope of the Problem ........................................................................... 29
Step 2. Conducting a Records Inventory................................................................................... 31
Physically inspect the files and record essential information. .................................................. 32
Step 3; Developing the Filing System - The File Structure and File Plan ................................ 34
Why are the File Plans Important? ............................................................................................ 34
Step 4. Developing Recordkeeping Requirements .................................................................... 38
Adequate and Proper Documentation ....................................................................................... 38
Types of Technology Applications ........................................................................................... 44
Matching Technology to Problems ........................................................................................... 45
Step 6. The Procedures Manual................................................................................................. 48
Background Information ........................................................................................................... 50
Procedures ................................................................................................................................. 51
Records ...................................................................................................................................... 51
Appendices ................................................................................................................................ 52
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LO1. Receive, identify and record receipts
 What is Receipt
It is;
 A written acknowledgment of having received, or taken into one's possession, a specified

amount of money, goods, etc.
 Receipts, the amount or quantity received.
 The act of receiving or the state of being received.
 Something that is received.
A receipt is a written acknowledgment that a specified article orpayment has been received. A
receipt records the sale of goods or provision of a service. If the recipient of the payment is
required to collect a tax from the customer, the amount collected would also be included on the
receipt and the amount would be deemed to have been collected on behalf of the relevant
government tax authority. In many countries a retailer is required to include the tax and similar
amounts in the price of goods sold. Similarly, amounts may be deducted from amounts payable,
as in the case of wage withholding taxes. On the other hand, tips or other gratuities given by a
customer, for example in a restaurant, would not form part of the payment amount. In some
countries, it is obligatory for a business to provide a receipt to a customer confirming the details
of a transaction. In most cases the recipient of money provides the receipt, but in some cases the
receipt is generated by the payer, as in the case of goods returned to a store for a refund. A
receipt is not the same as an invoice.
However, there is usually no set form for a receipt, such as a requirement that it be machine
generated. Many point-of-sale terminals or cash registers automatically produce receipts.
Receipts may also be generated by accounting systems, be manually produced or generated
electronically, for example if there is not a face-to-face transaction. To reduce the cost of postage
and processing, many businesses do not mail receipts to customers, unless specifically requested
or required by law; some transmitting them electronically. Others, to reduce time and paper, may
endorse an invoice, account or statement as "Paid".
Store receipts
The custom in most stores at the point of sale is for a salesperson to scan or in some way record
the price of a customer's proposed purchases, including tax, discounts and other adjustments. In
traditional situations and still in some family businesses today, the salesperson would then show
the customer the summary, the invoice, for their agreement; but most stores today bypass this
stage. The practice of presenting an invoice is most common in restaurants where a "bill" is
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presented after a meal. The salesperson would indicate to the customer the total amount payable,
and the customer would indicate the proposed method of payment of the amount. After
processing the payment, the salesperson would then generate in the one document an invoice and
receipt. If payment was made by a payment card, a payment record would also be generated.
These are the printed record of the transaction, and are legal documents. A copy of these
documents would be handed to the customer. In many countries a retailer is under a legal
obligation to provide a receipt to a customer which shows the details of a transaction and the
store and other information, so that the tax authority can check that sales are not being hidden.
The document may also include messages from the retailer, warranty or return details, special
offers, advertisements or coupons, but these are merely promotional and not part of the formal
receipt.
Receipts may also be provided for non-retail operations such as banking transactions.
Manual receipts
Hand-written or hand-completed receipts are more often used for infrequent or irregular
transactions, or for transactions conducted in the absence of a terminal, cash register or point of
sale: for example, as provided by a landlord to a tenant to record the receipt of rent.
Types of Receipt
Money is received in three ways:
• Directly by cheque or bank transfer.
• At the mill on open days, Saturday mornings or when milling/bagging
• Off‐site at talks, fairs, etc.
a) Direct Receipts
 Cheques received directly for memberships and postal sales are recorded by her in an
Excel file. Membership information is recorded in an Access database.
 Bank transfers are recorded from on line banking and held in an Excel file. copies the
details on a monthly basis for membership records and to confirm receipts for wholesales.
b) Receipts at the Mill
All receipts are rung into the till and identified as by cash or cheque. Donations arising from
“keep the change” are placed in the donations pot by the till. At the end of each day’s trading the
contents of the pot are counted and rung into the till as a single donation transaction.
c) Receipts Off‐site
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A manual record is made of cash and cheques received other than in the above two.
This record identifies receipts by item so that they can be rung into the till at the next
opportunity.
As soon as convenient after receipt these monies are rung into the till in the same way as those
received at the mill and the amounts tendered by cash and cheques are keyed accordingly.
The actual total of cash/cheques is checked against both the manual record and the till total. The
cash/cheques and the manual record are left either in the till or in the safe in the mill.
Recording and Depositing Cash Receipts
When to Deposit
All cash receipts should be recorded and deposited within 24 hours of receipt unless amounts
total less than $500, and then at least weekly, in Ethiopian context cash must be deposited if it
idle that mean out purpose and above 100 br.
If the correct account cannot be easily identified for a cash receipt, a suspense account should be
used to ensure that the receipt is recorded in a timely manner and posted to the University’s
accounting records. Such receipts will be reclassified when the correct account is determined.
Use of RIF (Receipt Identification Form)
Use the on-line Receipt Identification Form (RIF); to record receipt of any of the following
forms of payment.
 currency and coin
 checks
 drafts
 money orders
 traveler’s checks.
Certain items may be accompanied by supporting documentation that becomes part of the
deposit record, such as correspondence from donors or other descriptive correspondence or
attachments. Section 3 gives procedures for supporting documentation
Do not use RIF to record:
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 returns of Payroll overpayments: salary/wage or benefits
 repayments of charges that were initially incurred through Accounts Payable (e.g., vendor
refunds, repayments of travel or expense advances)
 receipt of grant or contract funds.
Returns of Payroll Overpayments
Do not enter a RIF for receipts intended to return an overpayment of salary or benefits. The
Payroll Department will enter all returns of overpayments.
To process a return of a salary or benefits overpayment:
1. Contact the Payroll Department at 436-4303 to determine the exact amount the employee
should return to the University.
2. Complete a Payroll Payment Adjustment Form.
3. Hand-deliver the completed Payroll Payment Adjustment Form and the original Yale
University paycheck and/or personal check to Payroll Office, 221 Whitney Avenue.
4. The Payroll Department will send a confirmation e-mail to the contact person indicated on
the Payroll Payment Adjustment Form, to notify the department that Payroll has received
the information and is processing the transaction.
Repayments of Accounts Payable Charges
Do not enter a RIF for receipts intended to repay charges that were initially incurred through
Accounts Payable. Examples of such receipts are:
 a refund check for an order that was reduced or canceled
 receipts that are intended to modify an existing invoice or purchase order that has already
been paid
 repayment of an outstanding travel or expense advance.
The Accounts Payable Department will enter all such repayments.
To process a repayment of an Accounts Payable charge:
1. Prepare a memo to Accounts Payable that includes:
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 an explanation of the repayment
 the PTAEO where the credit should be applied
 the name, phone number and e-mail address of the department contact person for this
transaction.
2. Attach the following:
 repayment check
 copy of vendor credit notice, original purchase order or invoice, or other supporting
documentation.
3. Hand deliver to Accounts Payable, 344 Winchester.
4. The Accounts Payable Department will send a confirmation e-mail to the department contact
person, confirming that Accounts Payable has received the information and is processing the
transaction.
Gift Income Received in the Department
Most often, contributions are sent directly to the Development Office and deposits are processed
by the Contribution Processing unit within that office.
However, occasionally departments directly receive cash or checks representing gifts to the
University. Such gifts may also be accompanied by letters or other documents describing the
intended use of the contributions.
Departments must deposit such gift income in RIF as described in Section 2. Send all
documentation to Contribution Processing as specified in Section 3, or place in an envelope
labeled for Contribution Processing and drop off at Treasury Services, the same day the deposit
is recorded and submitted.
If a gift received in this way is given for a new initiative or is restricted in some way that makes
its classification within a current source difficult or improper, one may need a new source and
award for the gift.
Prepare and Deliver the Deposit
Separate cash and checks from supporting documents. Submit coins in envelopes or rolls. If you
are submitting a large amount of cash, separate and strap the bills. Roll coin if it exceeds the
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standard amount of a roll of coin. Cash straps and coin wrappers are available at Treasury
Services.
Reconcile the cash to the corresponding tracking slip amount, and attach cash and checks
securely to the tracking slip.
If you have entered “various” on any line of the RIF you must attach a calculator tape or
spreadsheet that shows the details of the aggregated amounts. A tape must show the number of
items and the dollar amount of each.
Invoiced Sales
Some wholesales to shops and bakeries are invoiced. Receipts are treated as “direct” or “off‐site”
depending on method of payment. Invoices are sequentially numbered and maintains a list
identifying invoice no., date, customer, value, payment method and (where applicable) date rung
into till. The list is copied monthly to.
Income Reporting
Income is recorded under five main headings:
• Subscriptions.
• Donations ‐ money received for talks is treated as a donation.
• Entry fees from open days and group visits to the mill.
• Flour sales.
• Other merchandise – within this heading baked goods are currently identified separately and
paid for in arrears on the basis of items sold.
Income received through the till is reported on the basis of actual cash/cheques counted. In the
accounting records makes any adjustment required to till Z readings, consulting where necessary
with till operators. Identifiable discrepancies are adjusted accordingly; unidentified errors are
allocated to merchandise sales. Collates direct income and adjusted till receipts into a Sales
Report for each committee meeting, reconciled to the amounts banked to date.
Security
At the end of each day’s trading the contents of the till drawer are placed in the safe and the till
drawer is left open. After cashing up the float is left in the safe. If not they are bagged and left in
the safe separate from the float. Receipts are banked as soon as possible after cashing up.
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Financial Controls Policies and Procedures For Small Nonprofit
Organizations
1. Receipt of Checks in the Office. The Secretary opens all mail addressed to the organization.
The
Secretary makes a photocopy of all checks received and provides the photocopies to the
Treasurer.
This allows the Treasurer to verify that all checks received are deposited.
The Secretary will endorse all checks by an endorsement stamp that provides that the check is
“For
Deposit Only” and will be paid to the order of the corporate bank and lists the organization’s
name and account number. This lessens the risk that a check may be stolen and cashed.
2. Receipt of Cash in the Office. Cash is easily stolen and must be handled carefully. If cash
comes into the office, the person accepting the cash must provide a written receipt when taking
the cash:
• The receipt should state the person’s name, the date, the amount of the cash and the purpose of
the payment.
• Use a pre-numbered receipt book with an automatic duplicate copy with the organization’s
name printed on it.
• No pages may be removed from the receipt book.
• The person with access to the receipt book shall keep it in a locked drawer and shall lock cash
in a secured location until the Secretary can retrieve it.
• If possible, when the Secretary opens the location with the cash, one other person will
accompany the Secretary so that they can count the cash together.
3. Deposit Slips. The Secretary will deposit corporate funds as follows:
• Prepare a deposit slip in duplicate.
• Photocopy the checks and staple the photocopies to the copy of the deposit ticket that we keep.
• If cash will be included in the deposit, the Secretary will attach a list to the duplicate deposit
ticket which includes the sources of the cash and the receipt #s in the duplicate receipt book for
each source of cash.
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• File this documentation chronologically in a locked cabinet to prevent theft.
The Treasurer will consult the deposit ticket and attached photocopies when making the Bank
Reconciliation described below.
4. Bank Deposit. If no cash is present, the deposit may be mailed to the bank. If cash is present, a
second person (if available) shall verify deposited funds prior to the Secretary sealing the
envelope and making the deposit in person. The person verifying the cash shall initial the cash on
the copy of the deposit slip retained by the organization.
5. Receipt of Checks and Cash Outside the Office. If checks and/or cash come in outside the
office (such as at a fundraising event), we need to take special precautions to protect these
receipts from theft and to ensure that no one is falsely accused of stealing funds.
• Two people need to prepare the deposit slip for the funds in duplicate.
• Both must count the cash and initial the cash count on the copy of the duplicate deposit slip
kept by the organization.
• If the individuals accepting the contributions at the event know the names of the individuals
making gifts in cash, they will provide a receipt using the pre-numbered receipt book. If
the funds are received through a “pass the hat” style collection in which it is not possible
to know who gave what amount, the individuals accepting the contributions will note that
no receipts were provided to donors on the duplicate deposit slip.
• It is not necessary to write out a receipt for contributions made by check unless the donor
requests a receipt. However, the individuals accepting the contributions should make a list
of all checks received at the event, including the name of the donor and the amount of the
contribution. They will compare this list to the deposit to be sure all checks have been
included in the deposit.
• If no cash is received at the event, the individuals accepting the contributions by check will
give the Secretary the list and the checks within 24 hours of the event.
• If there is cash in the deposit, one of the two individuals accepting contributions must
deposit the funds immediately. If checks will be deposited with the cash, the individuals
accepting the checks should be sure that the list of checks they prepare includes the
donor’s address as well as name.
• The duplicate receipt book and the list of checks received shall be given to the Secretary
who will send acknowledgement letters.
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6. Credit Card Contributions. We do not accept contributions by credit card. If we decide to do
that, we need to get accounting advice to make sure we have the proper controls in place.
LO2. Match receipts to documentation

 Understanding the Receiving Process
You can use either an informal or formal receiving process to acquire the goods and services that
you requested on a purchase order. You must use the formal receiving process if you purchase
items to inventory; you can use the informal or formal receiving process if you purchase items or
services to the general ledger.
This section discusses:
 Informal receiving process.

 Formal receiving process.
Informal Receiving Process
An informal receiving process is one in which you enter receipt information at the same time that
you create a voucher. If you create a voucher for 50 pens, the system determines that you
received 50 pens.
When you use an informal receiving process, the system creates a single record in the F43121
table when you create a voucher. The system also creates a liability for the purchase at that time.
Formal Receiving Process
A formal receiving process is one in which you enter details of a receipt before you create
vouchers. You create vouchers based on the receipt information. For example, if you enter a
receipt for 50 pens, you must create a voucher for 50 pens.
To accurately account for the receipt of goods, the formal receiving process is likely to include:
 Taking physical receipt of items.

 Identifying details of the receipt.
 Recording details of the receipt.
You can use purchase receivers in the formal receipt process to manually record the receipt of
goods upon delivery. You can then enter that information into the system.
You can eliminate the use of purchase receivers if you use terminals to enter receipt information
upon delivery or if you use copies of original purchase orders as receiving forms.
Reviewing Journal Entries for Receipt Transactions
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This section provides an overview of journal entry review for receipt transactions and discusses
how to:
 Review journal entries for receipt transactions.

 Post receipts.
Understanding Journal Entry Review for Receipt Transactions
The system creates journal entries each time you enter or reverse a receipt. You can review the
journal entries for accuracy and then post them to the general ledger.
When you enter a formal receipt, the system creates journal entries that:
 Debit an inventory account if it is a stocked line; otherwise debit the general ledger
account.
 Credit a received not voucher account.
If tax is applicable to a receipt, the system also creates tax accrual entries. If you apply landed
costs at the time of receipt, the system creates entries for accrued landed costs.
You might use a standard cost method to determine the inventory cost for an item. The standard
cost for an item remains consistent unless you manually change it. If a variance exists between
the standard cost and the price at which you purchase an item, the system creates journal entries
to account for the variance. You use processing options to specify whether the system creates
separate journal entries for each detail line or summarizes the entries for all lines.
When you reverse a receipt, the system automatically reverses the corresponding journal entries.
Posting Receipts
To post receipts, select Receipts Matching and Posting, G/L Receipt Post.
After you review journal entries, you can post them to the general ledger using the General
Ledger Post program
When you run the General Ledger Post program, the system performs these processes:
Selects qualified batches of unposted transactions from the F0911 table.
Edits and verifies each transaction.
Posts accepted transactions
Marks each transaction and batch header as posted
Updates the amount relieved for non-stock items.
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Printing Receipt Information
You can print receipt information that is specific to purchase orders, suppliers, business units,
and so forth.
You can print the Open Purchase Order Status report to review purchase orders containing items
that are overdue. For each purchase order that you specify, you can review this detail line
information:
 Original order quantity.

 Received quantity.
 Quantity open to receive.
 Days overdue.
 Information for this report prints in this order:
 User ID
 Supplier
 Order number
 Line number
 A total open amount is provided for:
 Each purchase order
 Each supplier
 Each user
 The entire report
Understanding Purchase Receivers
A purchase receiver is a document that you use to manually record the receipt of goods upon
delivery. A purchase receiver provides you with:
 Original purchase order information.

 Quantities that you have yet to receive.
 A column for recording receipt quantities or amounts.
You might need a purchase receiver to:
 Review purchase order information for incoming goods.

 Confirm information about the items that you receive.
 Record receipt information to enter in the system.
You determine the information that prints on purchase receivers. Processing options enable you
to specify whether to print:
 Price information
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 Order quantities
 Cross-reference numbers
 Foreign currency amounts
Entering Receipts
This section provides an overview of receipt information, lists a prerequisite, and discusses how
to:
 Set processing options for Receipts

 Enter receipt information.
Understanding Receipt Information
After you receive the goods on a purchase order, you must record the details of the receipt. The
system uses receipt information to:
 Update item quantities and costs in the Inventory Management system.

 Update general ledger accounts.
When you receive goods, you must verify that the details of the receipt correspond to the
information on the purchase order. You must verify item numbers, quantities, units of measure,
costs, and so forth. If the receipt details differ from those on the purchase order, you must adjust
the purchase order detail lines to reflect the receipt. For example, if landed costs, such as
delivery charges or import taxes, apply to the item's purchase price, you enter these costs for the
order during the receipt process.
The system also enables the pricing and repricing of purchase order items at receipt. Pricing and
repricing at receipts for matrix items and quality attributes enables you to account for price
changes that must be reflected when an item is received.
When a direct ship order is created in JD Edwards EnterpriseOne Sales Order Management, the
system automatically creates a corresponding purchase order. For a direct ship order, you must
enter a receipt to update the corresponding sales order with the new status information. However,
if you enter a partial receipt, the system splits the corresponding order detail lines on the direct
ship sales order and updates only the order detail line that was received.
If you work in an inventory environment, you can specify the warehouse location in which to
store items upon receipt. If a certain location is full, you can assign items to multiple locations. If
you group items by lot, you can assign items to a single lot or to multiple lots. If necessary, you
can specify serial numbers for these items.
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If the receiving branch/plant has license plate functionality activated, you use the processing
options on the Warehouse tab and license plate branch/plant constants to process license plate
information for adding inventory to the location.
Each time you receive an order, the system:
 Creates a receipt record Updates item quantities (availability and commitment)

 Adds a new record
 Updates the appropriate accounts
Each time you cancel or reverse a receipt, the system updates the same tables that were updated
when you entered the original receipt.
Entering Receipt Information
You must enter receipt information to verify the receipt of goods or services on a purchase order.
You must verify the quantity, cost, and so forth for each order that you receive.
If you are entering a receipt that has many purchase order detail lines, you might want to enter
the information using the network. If you are entering a receipt for a kit, you can enter receipt
information for the components only. You cannot enter a receipt for the parent item.
To enter a receipt, you must first locate the open purchase-order detail lines that correspond to
the receipt. An open detail line contains items that have not yet been received. The system
retrieves all open detail lines for the item number, purchase order number, or account number
that you specify. You can set the processing options for PO Receipts (P4312) to display cost
information and to determine whether you can change costs for the order detail lines.
Pricing and Re-pricing at Receipts
You can price and re-price items at receipt based on quality attributes and changes in pricing.
The system uses contracts and price adjustments to calculate the new item price at receipts.
Note:
If two or more users attempt to receive an order with the same item and branch/plant
combination at the same time, one or more of the users may get a transaction error.
Understanding Receipt Information Printouts
You can print receipt information that is specific to purchase orders, suppliers, business units,
and so forth.
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You can print the Open Purchase Order Status report to review purchase orders containing items
that are overdue. For each purchase order that you specify, you can review this detail line
information:
o Original order quantity.

o Received quantity.
o Quantities open to receive.
o Days overdue.
Information for this report prints in this order:
o User ID
o Supplier
o Order number
o Line number
o A total open amount is provided for:
o Each purchase order
o Each supplier
o Each user
o The entire report
You can print the Inventory Receipts Register report to review all items that you have received
from a supplier. This report contains the following information for each detail line that pertains
to a supplier:
o Item number or account number.

o Date that the order was received.
o Received quantity and amount.
Document
1) In general, a document (noun) is a record or the capturing of some event or thing so that the
information will not be lost. Usually, a document is written, but a document can also be made
with pictures and sound. A document usually adheres to some convention based on similar or
previous documents or specified requirements. Examples of documents are sales invoices, wills
and deeds, newspaper issues, individual newspaper stories, oral history recordings, executive
orders, and product specifications.
A document is a form of information . A document can be put into an electronic form and stored
in a computer as one or more file s. Often a single document becomes a single file. An entire
document or individual parts may be treated as individual data items. As files or data, a
document may be part of a database . Electronic Document Management ( EDM ) deals with the
management of electronically-stored documents.
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When using certain computer application programs such as a word processor , a document is the
unit of saved work. Each document is saved as a uniquely named file.
In the computer industry, documentation is the information provided to a customer or other users
about a product or the process of preparing it.
2) To document (verb) a fact, event, or other thing is to record or annotate it, meaning to put it
into some relatively permanent form so that it can be retrieved later.
LO3: Enter data to systems

 Cash Receipts Procedure
The process of receiving cash is highly regimented. This is because the task of processing checks
is loaded with controls. They are needed to ensure that checks are recorded correctly, deposited
promptly, and not stolen or altered anywhere in the process.
The procedure for check receipts processing is outlined below:
1. Record checks and cash. When the daily mail delivery arrives, record all received checks
and cash on the mailroom check receipts list. For each check received, state on the form
the name of the paying party, the check number, and the amount paid. If the receipt was
in cash, then state the name of the paying party, check the “cash?” box, and the amount
paid. Once all line items have been completed, enter the grand total in the “total receipts”
field at the bottom of the form. Sign the form, and state the date on which the checks and
cash were received. Also, stamp “for deposit only” and the company’s bank account
number on every check received; this makes it more difficult for someone to extract a
check and deposit it into some other bank account.
2. Forward payments. Insert all checks, cash, and a copy of the mailroom check receipt list
into a secure interoffice mail pouch. Have it hand-delivered to the cashier in the
accounting department. The cashier matches all items in the pouch to the mailroom check
receipt list, initials a copy of the list, and returns the copy by interoffice mail to the
mailroom. The mailroom staff then files the initialed copy by date.
3. Apply cash to invoices. Access the accounting software, call up the unpaid invoices for
the relevant customer, and apply the cash to the invoices indicated on the remittance
advice that accompanies each payment from the customer. If there is no indication of
which invoice is to be credited, record the payment either in a separate suspense account,
or as unapplied but within the account of the customer from whom it came. In the latter
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situation, make a photocopy of the check and retain it for application purposes at a later
date, so that the check can still be deposited on the current date.
4. Record other cash (optional). Some cash or checks will occasionally arrive that are not
related to unpaid accounts receivable. For example, there may be a prepayment by a
customer, or the return of a deposit. In these cases, record the receipt in the accounting
system, along with proper documentation of the reason for the payment.
5. Deposit cash. Record all checks and cash on a deposit slip. Compare the total on the
deposit slip to the amount stated on the mailroom check receipts list, and reconcile any
differences. Then store the checks and cash in a locked pouch and transport it to the bank.
6. Match to bank receipt. Upon receipt of the checks and cash, the bank issues a receipt for
it. Someone other than the cashier should compare this receipt to the amount on the
deposit slip, and reconcile any differences. It may be useful to staple the receipt to a copy
of the deposit slip and file the documents, as proof that the matching step was completed.
Chart of Accounts
The chart of accounts is a listing of all the accounts in the general ledger, each account
accompanied by a reference number. To set up a chart of accounts, one first needs to define the
various accounts to be used by the business. Each account should have a number to identify it.
For very small businesses, three digits may suffice for the account number, though more digits
are highly desirable in order to allow for new accounts to be added as the business grows. With
more digits, new accounts can be added while maintaining the logical order. Complex businesses
may have thousands of accounts and require longer account reference numbers. It is worthwhile
to put thought into assigning the account numbers in a logical way, and to follow any specific
industry standards. An example of how the digits might be coded is shown in this list:
Account Numbering
1000 - 1999: asset accounts

2000 - 2999: liability accounts
3000 - 3999: equity accounts
4000 - 4999: revenue accounts
5000 - 5999: cost of goods sold
6000 - 6999: expense accounts
7000 - 7999: other revenue (for example, interest income)
8000 - 8999: other expense (for example, income taxes)
By separating each account by several numbers, many new accounts can be added between any
two while maintaining the logical order.
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Defining Accounts
Different types of businesses will have different accounts. For example, to report the cost of
goods sold a manufacturing business will have accounts for its various manufacturing costs
whereas a retailer will have accounts for the purchase of its stock merchandise. Many industry
associations publish recommended charts of accounts for their respective industries in order to
establish a consistent standard of comparison among firms in their industry. Accounting software
packages often come with a selection of predefined account charts for various types of
businesses.
There is a trade-off between simplicity and the ability to make historical comparisons. Initially
keeping the number of accounts to a minimum has the advantage of making the accounting
system simple. Starting with a small number of accounts, as certain accounts acquired significant
balances they would be split into smaller, more specific accounts. However, following this
strategy makes it more difficult to generate consistent historical comparisons. For example, if the
accounting system is set up with a miscellaneous expense account that later is broken into more
detailed accounts, it then would be difficult to compare those detailed expenses with past
expenses of the same type. In this respect, there is an advantage in organizing the chart of
accounts with a higher initial level of detail.
Some accounts must be included due to tax reporting requirements. For example, in the U.S. the
IRS requires that travel, entertainment, advertising, and several other expenses be tracked in
individual accounts. One should check the appropriate tax regulations and generate a complete
list of such required accounts.
Other accounts should be set up according to vendor. If the business has more than one checking
account, for example, the chart of accounts might include an account for each of them.
Account Order
Balance sheet accounts tend to follow a standard that lists the most liquid assets first. Revenue
and expense accounts tend to follow the standard of first listing the items most closely related to
the operations of the business. For example, sales would be listed before non-operating income.
In some cases, part or all of the expense accounts simply are listed in alphabetical order.
Sample Chart of Accounts
The following is an example of some of the accounts that might be included in a chart of
accounts.
Sample Chart of Accounts
Asset Accounts
Current Assets
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1000 Petty Cash
1010 Cash on Hand (e.g. in cash registers)
1020 Regular Checking Account
1030 Payroll Checking Account
1040 Savings Account
1050 Special Account
1060 Investments - Money Market
1070 Investments - Certificates of Deposit
1100 Accounts Receivable
1140 Other Receivables
1150 Allowance for Doubtful Accounts
1200 Raw Materials Inventory
1205 Supplies Inventory
1210 Work in Progress Inventory
1215 Finished Goods Inventory - Product #1
1400 Prepaid Expenses
1410 Employee Advances
1420 Notes Receivable - Current
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1430 Prepaid Interest
1470 Other Current Assets
Fixed Assets
1500 Furniture and Fixtures
1510 Equipment
1520 Vehicles
1530 Other Depreciable Property
1540 Leasehold Improvements
1550 Buildings
1560 Building Improvements
1690 Land
1700 Accumulated Depreciation, Furniture and Fixtures
1710 Accumulated Depreciation, Equipment
1720 Accumulated Depreciation, Vehicles
1730 Accumulated Depreciation, Other
1740 Accumulated Depreciation, Leasehold
1750 Accumulated Depreciation, Buildings
1760 Accumulated Depreciation, Building Improvements
Other Assets
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1900 Deposits
1910 Organization Costs
1915 Accumulated Amortization, Organization Costs
1920 Notes Receivable, Non-current
1990 Other Non-current Assets
Liability Accounts
Current Liabilities
2000 Accounts Payable
2300 Accrued Expenses
2310 Sales Tax Payable
2320 Wages Payable
2330 401-K Deductions Payable
2335 Health Insurance Payable
2340 Federal Payroll Taxes Payable
2350 FUTA Tax Payable
2360 State Payroll Taxes Payable
2370 SUTA Payable
2380 Local Payroll Taxes Payable
2390 Income Taxes Payable
2400 Other Taxes Payable
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2410 Employee Benefits Payable
2420 Current Portion of Long-term Debt
2440 Deposits from Customers
2480 Other Current Liabilities
Long-term Liabilities
2700 Notes Payable
2702 Land Payable
2704 Equipment Payable
2706 Vehicles Payable
2708 Bank Loans Payable
2710 Deferred Revenue
2740 Other Long-term Liabilities
Equity Accounts
3010 Stated Capital
3020 Capital Surplus
3030 Retained Earnings
Revenue Accounts
4000 Product #1 Sales
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4060 Interest Income
4080 Other Income
4540 Finance Charge Income
4550 Shipping Charges Reimbursed
4800 Sales Returns and Allowances
4900 Sales Discounts
Cost of Goods Sold
5000 Product #1 Cost
5050 Raw Material Purchases
5100 Direct Labor Costs
5150 Indirect Labor Costs
5200 Heat and Power
5250 Commissions
5300 Miscellaneous Factory Costs
5700 Cost of Goods Sold, Salaries and Wages
5730 Cost of Goods Sold, Contract Labor
5750 Cost of Goods Sold, Freight
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5800 Cost of Goods Sold, Other
5850 Inventory Adjustments
5900 Purchase Returns and Allowances
5950 Purchase Discounts
Expenses
6000 Default Purchase Expense
6010 Advertising Expense
6050 Amortization Expense
6100 Auto Expenses
6150 Bad Debt Expense
6200 Bank Fees
6250 Cash Over and Short
6300 Charitable Contributions Expense
6350 Commissions and Fees Expense
6400 Depreciation Expense
6450 Dues and Subscriptions Expense
6500 Employee Benefit Expense, Health Insurance
6510 Employee Benefit Expense, Pension Plans
6520 Employee Benefit Expense, Profit Sharing Plan
6530 Employee Benefit Expense, Other
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6550 Freight Expense
6600 Gifts Expense
6650 Income Tax Expense, Federal
6660 Income Tax Expense, State
6670 Income Tax Expense, Local
6700 Insurance Expense, Product Liability
6710 Insurance Expense, Vehicle
6750 Interest Expense
6800 Laundry and Dry Cleaning Expense
6850 Legal and Professional Expense
6900 Licenses Expense
6950 Loss on NSF Checks
7000 Maintenance Expense
7050 Meals and Entertainment Expense
7100 Office Expense
7200 Payroll Tax Expense
7250 Penalties and Fines Expense
7300 Other Taxes
7350 Postage Expense
7400 Rent or Lease Expense
7450 Repair and Maintenance Expense, Office
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7460 Repair and Maintenance Expense, Vehicle
7550 Supplies Expense, Office
7600 Telephone Expense
7620 Training Expense
7650 Travel Expense
7700 Salaries Expense, Officers
7750 Wages Expense
7800 Utilities Expense
8900 Other Expense
 Understanding Manual Receipts

Understanding Receipts Entry Methods
Depending on the type of receipt, you can use either the Standard Receipts Entry or Speed
Receipts Entry program to enter receipts. If you enter unapplied or general ledger receipts you
can use either program. To help determine which method you should use, consider the
advantages and limitations of standard and speed receipts entry:
Understanding the Steps for Processing Manual Receipts
You use the standard three-tier processing steps to manage manual receipts:
 Enter
 Review
 Post
This graphic illustrates the receipt entry process and the tables that the system updates:
Figure 1below shows Manual receipts process
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LO4. File documentation
Briefly, here is the 6-step program to effective files documentation :
Step 1. Determine what records are most important to your program, who should be responsible
for them, and where they should be located.
Step 2. Conduct a records inventory of all the unit's records and match the records to the records
schedules).
Step 3. Develop a file plan and filing procedures
Step 4. Develop recordkeeping requirements
Step 5. Improve files management via technology, indexing, and specialized equipment
Step 6. Produce a Records Management Manual
Step 1. Understand the Scope of the Problem
The keys to good filing practices are:
 Filing only what you need to file;

 Filing it in a way that facilitates access and disposition; and,
 Doing it consistently.
To do this you first must analyze your program's records management needs by determining
what records are most important to your program, who should be responsible for them, and
where they should be located. To start the process take some time in your regularly scheduled
unit meetings to discuss the four questions posed below. The unit head (division director, branch
chief, or section head) should lead the discussion.
Question 1: What does your program do that needs to be documented?
Brainstorm about the types of records created in your program. Examples might include permit
files, project files, reports, publications, time cards, personnel files, contract files, and so on.
Develop a list and group similar types of records, such as multiple correspondence or subject
files, together into series (see the box). The series is the basic unit for organizing and controlling
your files.
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What is a Records Series?
Series are those file units or documents kept together because they relate to a particular subject
or function, result from the same activity, document a specific type of transaction, take a
particular physical form, or have some other relationship arising out of their creation, receipt,
maintenance, or use. The series concept is a flexible one, and programs should be careful to
create series by organizing their documents in ways that facilitate management of the records
throughout their life cycle.
Question 2: Which of these records series are important to your program?
Look at each type of record and decide why it is created and maintained. Your program may be
required to create and maintain records for a number of valid reasons including program
administration, management reporting, statute, Federal regulation, Agency policy or procedures.
There are less valid reasons too, such as reference and personal convenience. Frequently the only
justifications for maintaining files are personal ones such as "I need the records for reference",
"Joe wanted me to keep a copy," "somebody may ask for it", and "I don't trust anyone else to
keep it."
If you are honest, you will probably find that many of the series on the list for your office are
working files, files maintained simply for convenience, or reference materials. Put those aside for
now, and concentrate your attention on the files that directly support EPA's mission or
administration. These are the records without which your program could not function. They are
the ones you need to control. Identifying these records is the most important and the most
difficult step in the files improvement process. Once that is completed the next two questions are
easy.
Question 3: Who should be responsible for each of the records series?
This person, usually called the file custodian, may be a secretary or administrative officer, or a
technical specialist, or the unit head. Generally there should be only one custodian per series
(obviously each staff person is responsible for his or her own working files).
Question 4: Where should each series be located?
Identify the location, often called the "file station". Take this information and develop a matrix
(see the sample below) that lists all of your records series, the person responsible and the file
station.
To cover all of the items above will probably take more than one meeting, which is why we're
allowing two months for this first step. Once the four questions are answered, you will have a
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theoretical framework for understanding and controlling your files. In Step 2, the records
inventory, you will match this construct to reality.
Sample Matrix for Office Files
File Name Custodian Location
Contract files Paul Goodman Div. file cabinet

Administrative Officer Room 226
Permit files Pam Butler File room

File Clerk Room 231
Correspondence files Cindy Clark Cindy's desk

Division Secretary Room 226
Ann Arbor Study Tim Haas Tim's Desk

Project Manager Room 229A
Step 2. Conducting a Records Inventory
In Step 1 you were to develop a documentation strategy to identify what records your program
needs to keep, where they should be filed, and who is responsible for them. The second step is to
match that theoretical structure to reality by going out and conducting an inventory of what is
actually in your office. To conduct an inventory means to do four things:
1. Physically inspect all of the files in the unit and record the essential information about
them.
2. Identify duplicate, fragmented, and related records.
3. Match the records to the records schedules.
4. Evaluate the existing records (documentation) against your documentation strategy and
information needs.
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Physically inspect the files and record essential information.
This is the most time consuming part of the entire process. To do a good job you will need a data
collection form, and a tape measure (and a sense of humor). Systematically survey any areas
where records might be stored such as offices, storage areas, and off-site storage areas. Look for
records in all media including maps, audio-visual materials, and electronic records.
To save time, divide what you find into four categories:
1. Personal papers
2. Reference materials
3. Other non-record materials such as stocks of publications
4. Records or potential records (including working files)
For the first three groupings, collect only the following information:
 Volume (linear feet or inches)

 Owner (who has custody of the materials) and telephone number and mail code
 Location (room number, file cabinet drawer, etc.)
For record and potential record material, you should collect the following information:
 Office What is the name of the program (office, division, or branch) responsible for the
records?
 Location Where are the documents physically located?
For example: file room, someone's office, etc.
 Title What are they called?
For example: permits, correspondence, etc.
 Inclusive dates What is the date span?
For example: 1992-1999
 Description What is included in the folder?
For example: Contains records used in the issuance or denial of a permit issued by EPA
offices or authorized states, Federal Facilities, or interstate agencies. Includes draft and
final permits, major and minor permits, permit modifications, general, special,
emergency, research, interim permits, pretreatment, and others.
 Arrangement How are they arranged?
For example: alphabetically, by date, etc.
 Medium What is the format?
For example: paper, microfilm, electronic, video, etc.
 Volume What is the current volume in feet or inches?
For example: 2"
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 Annual accumulation What is the rate of buildup in one year?
For example: 6"
 File break When is the file closed or "cut off?"
For example: at end of fiscal year
 Legal requirements Are these documents created or collected pursuant to a statute or
regulation? If so, which one(s)?
For example: Clean Water Act, as amended, Sections 402, 404, 40 CFR 122
 Vital records Are these documents needed for disaster recovery purposes or to protect
rights and interests?
 Finding aids Are there any related indexes or lists which serve as finding aids?
 Restrictions Do the documents contain any restricted information such as confidential
business information (CBI), Privacy Act or enforcement sensitive information?
 Related records Are there any other records which are related to this group or series?
Are copies maintained elsewhere, and if so, who holds them?
To effectively capture all the information, we recommend you use some type of inventory form.
We have included samples here or you can develop your own.
Sample Inventory Forms

Record Series Inventory Form (MS Word) (2 pp, 75K)
Electronic System Inventory Form (MS Word) (2 pp, 68K)
Identify duplicate, fragmented, and related records.
Once you've completed the inventory, you will be faced with a pile of survey forms organized by
the locations and custodians of the files. These forms are like pieces to a puzzle that need to be
assembled to create a picture of your unit's documentation.
To do this, you must establish intellectual control over them. First, review the survey forms and
identify records that:
 Duplicate each other or overlap. A complete file should be created and the duplicates
eliminated as to the extent feasible.
 Are fragmented with the result that the complete file is divided among several persons,
each of whom has a portion of the complete file. The fragments should be physically
united, if at all possible. At a minimum, the unit needs to understand where all the
pieces are and who is responsible for them, and then standardize the way they are
arranged and maintained.
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 Are related to one another, such as drafts and finals, chron and subject files, or final
reports and working papers. By understanding the relationships, you will be able to
better determine the best retention for each piece.
Match the records to the records schedules.
The next step is to match the inventory results to the records schedules. Remember, many
programs use generic schedule items such as Project Files or Contracts rather than identifying
individual projects. If you have questions, call your Records Liaison Officer or the National
Records Management Program Help Desk for assistance. Records for which schedule items do
not exist will have to be scheduled.
Match the existing documentation against your documentation strategy and evaluate
whether it matches your information needs.
The final step in the process is to determine whether the records you have are the ones you need.
Compare the records you have identified to your documentation strategy.
 Do you keep files you don't need?

 Are you missing files you do need?
 Does the current organization and retention meet your current needs?
 If not, what should be changed so your needs are met?
Step 3; Developing the Filing System - The File Structure and File Plan
Many people think a file plan is simply a listing of the file folders currently in their file cabinets.
A real file plan is only one component of a filing system, which is a set of policies and
procedures for organizing and identifying files or documents to speed their retrieval, use, and
disposition. The first document in the filing system was the Matrix for Office Files you
developed as part of Step 1. The matrix shows what files the program maintains, who maintains
them, and where they are maintained. The second document is the records schedule that
describes the record series and gives the retention and disposition. The third document is the file
plan.
Why are the File Plans Important?
Day-to-day, it is your key to better files. It will help you avoid the "subject file trap" by enabling
you to:
 Document your program's activities effectively.

 Identify records consistently.
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 Retrieve records quickly.
 Link to the records schedules.
 Retire records to the Federal Records Center easily.
The Subject File Trap
How often do you hear the request to "Please make a new folder for this and add it to the subject
file"? The office "subject file" is one of the biggest records management problems in EPA. The
typical subject file has the following characteristics, ALL BAD:
 It contains records, non records and personal papers.

 It contains records that belong in multiple series.
 There are no rules or procedures for filing documents.
 It is never "cut off" so that active and inactive records are filed together.
Subject files can work, and at the branch and section level they often make sense. How can you
make a good subject file? Here are some tips:
 Establish procedures for filing documents and maintaining the file.

 Restrict the subject file to records used for managing and administering the unit, such as
branch or section. File records about actual work the unit does in appropriate series.
 Establish a list of subjects and keep it up to date. Make the filing designations broad
enough that you don't end up making a new file for every new document.
File plans operate on two levels. They guide you in identifying and arranging the records series
in the filing equipment, and they guide you in arranging the document or file folders in the
records series. Although the two are related, there are some differences.
Identifying and Arranging Series
As you completed Steps 1 and 2, you identified and separated out the non record materials in
your file cabinets, and then identified the records series and matched them to the records
schedules. The series is the fundamental building block of the file plan. Identifying records by
series makes it easy to determine what should be filed in the series and what the retention is. To
work most effectively, the series, records schedules, and file plan must be integrated into an
overall file plan structure.
Arrangement
There is no one arrangement scheme that is best for all records. Here are some basic suggestions
on the major ones. For more information, consult any records management text book, or contact
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the National Records Management Program for a bibliography of what is available in the records
management collection.
 Chronological
Arranged by date. Most useful for small files and for records that have a very short life
span so that you can destroy older materials without difficulty.
 Numeric
Arranged by number. In its simplest form, a serial arrangement beginning with the
lowest number and proceeding, but more complex systems can be used for large series.
Best for case files of one type or another, permits, and forms where numbers have
already been assigned.
 Alphabetical
Arranged in alphabetical order from A-Z. This is the basic arrangement for most subject
files. There are books written on both how to assign the titles that are put in alphabetical
order, and how to alphabetize the folder (Do you file University of Maryland under
University or Maryland?). Alphabetical subject files are difficult to manage unless they
are very focused, and the filing and identification of folders is consistent. If you have a
folder that concerns the publication of a Federal Register notice concerning a regulation
on a specific chemical, do you file it under Federal Register Notices, regulations, or the
name of the chemical? Best used for small files or very consistent ones where the folder
titles are easily determined -- e.g., a file of all outgoing correspondence arranged by
addressee.
 Alpha-numeric
Arranged according to an identifier made up of letters and numbers. Whenever possible,
the alphabetic and numeric parts of the identifier should mean something rather than
being arbitrarily assigned.
Agency File Codes
The approach we suggest is to use the Agency File Codes as the basic tag to identify each series.
The file code is made up of the function code (e.g., 401 - Administrative Management) and then
the three digit EPA series number from the records schedules. The function code allows you to
separate them by business process. Besides allowing you to easily and briefly identify each
series, the file codes serve to standardize records across programs and facilitate the exchange of
information and the tracking of records.
A Sample of Commonly Used Agency File Codes

401 110 - Office Administrative Files
405 036 - Routine Procurement Files
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401 187 - Intra-Agency and Internal Committees
405 202 - Contract Management Records
401 127 - General Correspondence Files
Once you've identified the series using the file code, you can begin grouping those with the same
prefix together in your filing equipment. Half of the file plan battle is won!
Arranging the Records Within the Series
The second stage of the file plan is to determine how to arrange the folders or documents within
the series. There are four basic ways to arrange records within a series:
 By date (chronological)
 By some assigned number (numeric)
 In alphabetical order by folder title (alphabetic)
 According to a code made up of letters and numbers (alpha-numeric)
Choosing the Arrangement
The obvious question is which arrangement scheme to choose for each series of records. You
need to think about how the records will be used, what characteristics the staff use to identify the
records, how the records are requested, and whether they will be indexed. Let's look at each of
these issues in turn.
 How will the records be used?

If your office is responsible for permit files and each staff person is assigned the permits
of a State, it makes sense to arrange the permits first of all by State so that each staff
person doesn't have to search the entire file to find the ones for his or her State. If, on
the other hand, permits are assigned to staff in a random way, some other arrangements
such as permit number, facility name, facility number, etc., would be better.
 What characteristics do the staff use to refer to the records?
Continuing with the permit files example, programs may use the facility name, the
permit number, or a facility ID to identify files. Any of these can be used for the
primary classification scheme, although standardized numbers may simplify cross-
media analysis. The best advice is to use whatever identifier the staff currently use.
There is no reason to arrange the files by permit number when staff look for them by
facility name or vice versa.
 How are the records requested?
Perhaps you have a correspondence series of outgoing letters signed by various staff
members. There are a number of ways to arrange the outgoing letters. If someone asks
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you to find a letter, what do they say? If it's "I wrote a letter..." maybe the series should
be arranged by author or signer. If it's "About three weeks ago..."chronological may be
the best bet. If it's "Didn't we send a letter to so-and-so..." the arrangement should be by
addressee. Finally, if it's "Have we ever had a letter asking about..." then a subject file
might be best. Pick the arrangement that will enable you to respond to the most requests
most easily. If the series is an important one, you should think about indexing it to
simplify searching in multiple ways.
 Will the records be indexed?
If the records will be indexed, the questions are a lot simpler. Generally, modern
automated indexes offer a number of search fields, and the physical arrangement of the
records is less important. If the records will be indexed, the series should be physically
arranged in whatever way makes the filing simplest, usually chronologically or
numerically, depending upon the type of records.
Some Final Tips

 Keep the file plan simple. Let the records structure themselves when at all possible. For
example, don't make up an alpha-numeric filing scheme for permits that already have a
number.
 Consider using color coding for files or special folders to make filing simpler.
 Have program staff assist in developing the file plan. They will have useful suggestions,
and they will feel more positive about using the file plan if they had a hand in
developing it.
 Don't reinvent the wheel. The National Records Management Program has copies of
many file plans for Headquarters and Regional offices. One of them may save you the
time of developing your own.
Step 4. Developing Recordkeeping Requirements
At one time, records management was thought of as simply a way to cut down on the amount of
paper in the office. Records schedules that allowed for the rapid destruction of the records, and
microfilming (or lately imaging) systems that "got the paper off the floor" and freed up space
were two of the cornerstones of an effective records management program.
Adequate and Proper Documentation
There has always been a second component to records management - the need to provide for the
"adequate and proper documentation" of activities as the Code of Federal Regulations (CFR)
calls it. Agencies and programs ensure that they have "adequate and proper documentation" by
developing recordkeeping requirements. In other words, "adequate and proper documentation" is
our goal and recordkeeping requirements are the means to implement the goal. Recordkeeping
requirements allow Agency programs to create and maintain documentation that is complete,
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consistent across offices, concise (only necessary documentation is included), compliant (meet
all statutory, Federal and Agency requirements), and cost effective.
Despite all of the benefits that accrue from having recordkeeping requirements, few Federal
agencies have developed a comprehensive recordkeeping requirements program. There are at
least three reasons for this.
 Although the CFR mandates that agencies develop recordkeeping requirements, neither
the regulations nor the National Archives and Records Administration (NARA) provide
much in the way of guidance on how to do it.
 Although recordkeeping requirements are not a new idea, the stress on them is relatively
recent.
 Finally, developing comprehensive recordkeeping requirements actually involves

creating multiple layers of requirements, and it is often hard to get all parties to focus on
the issue.
Three Components of Recordkeeping Requirements
The three basic components (layers) of a comprehensive recordkeeping requirements package

are:
 Agency requirements
 Program requirements
 Series requirements
It's the Law...Regulations Governing Recordkeeping Requirements
Agencies shall identify, develop, issue, and periodically review their recordkeeping requirements
for all their activities at all levels and locations and for all media. Recordkeeping requirements
shall:
a. Identify and prescribe specific categories of documentary materials to be systematically

created or received and maintained by agency personnel in the course of their official
duties;
b. Prescribe the use of materials and recordkeeping techniques that ensure the preservation of
records as long as they are needed by the Government;
c. Prescribe the manner in which these materials shall be maintained wherever held; and
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d. Distinguish records from nonrecord materials and, with the approval of the Archivist of the
United States, prescribe action for the final disposition of agency records when they are no
longer needed for current business.
36 CFR 1220.32 Federal Records - General, Subpart C - Standards for Agency Recordkeeping
Requirements
Let's look at each of the three components of a comprehensive recordkeeping requirements

package.
Agency Requirements
The Agency is responsible for developing the overall framework for the recordkeeping
requirements program. For example, the Agency (principally the Office of Information
Collection (OIC) at EPA) issues policies and procedures covering:
 The definition of records and nonrecord
 Program responsibilities
 The management of records in all media
 Records creation and disposition
 Filing requirements
As NARA pointed out in its 1992 evaluation of EPA's records management program, the
Agency's recordkeeping requirements at this level are fairly complete, and OIC is working to
strengthen those that are out of date.
Program Requirements
Beneath this umbrella of Agency requirements exists a level of program-specific requirements.

These requirements must address the types of records that must be kept to adequately and
properly document an organization's activities.
Some requirements derive from legislation, as in cases where programs are required to maintain
certain types of records such as dockets or the Superfund administrative record. Frequently, these
are among our best documented activities because the Agency is very responsive to statutory
requirements.
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Other program requirements are less well identified, often because the "program" crosses
organizational boundaries. At EPA, there is an obvious need to develop an overall set of
recordkeeping requirements for contract management, clearly laying out the recordkeeping
responsibilities of the contracting officer, project officer, and work assignment manager/delivery
order project officer. Such recordkeeping requirements would also address records maintained in
the Integrated Contract Management System, and the processing centers in Cincinnati and
Research Triangle Park, as well as distinguishing between documentation of the costs incurred
and the evaluation of the work performed.
At the program level, recordkeeping requirements must identify four types of information at a
high level:
 The basic records series that must be created and maintained by all organizations to
document their activities.
 The programs or offices responsible for the record copies of those series.
 The relationships among the series, including the relationships of hard copy to electronic
files, system input documents, legal and audit requirements, and similar questions.
 An overall retention strategy to ensure the documentation is retained long enough to meet
programmatic, administrative, fiscal, legal, and historical needs.
To give a concrete example, following is a list of records series needed for a "documentation
strategy" for Superfund.
Superfund Documentation Strategy
The following are among the principal types of records necessary for documenting the Superfund
program:
 Administrative records
 Cost recovery records
 Site file records
 Contract, grant and interagency agreement records
 Records related to CERCLIS, and other electronic systems (data and documentation)
 Enforcement records
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 Litigation support records
 Laboratory analytical records
 Research records in the Office of Research and Development
 Policies, directives, procedures, and guidance documents
 Publications developed in Superfund
 Program planning documents
 Oversight documents
Records falling under each of these types may be found in all Agency offices at Headquarters, in
the Regions, and at EPA Laboratories. They will include paper, microform, electronic
information systems, maps, geographic information systems, computer models, as well as paper
files.
Series Specific Requirements
The third level of recordkeeping requirements identifies what records are to be included in the
specific records series and how they are to be arranged. Series level recordkeeping requirements
incorporate a number of pieces of information that were discussed in earlier steps such as:
 Location and custodians of the series
 Relationship to other records
 Retention and disposition
 File identification and arrangement
In addition, the series level recordkeeping requirements should address the following questions:
 What documents need to be included in the file?
 What documents can be safely discarded?
 How should the documents be arranged?
 Is it necessary to retain drafts?
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 When and how should telephone calls, meetings, and electronic mail exchanges be
documented for the record?
 For project case files, should there be a single series, or should the documentation be
divided between an "official case file" of primary documentation and a "case working
file" containing supporting information?
Case Working Files
As much as 70% of the program records in an office normally consist of "case files." Case files
contain important documentation of program activities but often become voluminous. Frequently
the problem is that although all the records in a case file relate to the same activity (issuing a
permit for example) some of the documents (papers supporting the issuance of the permit or
inspection reports) may not need the same retention as the permit itself.
One solution is to divide the documentation between the official case file and the case working
file. The official case file consists of the essential documents concerning the action, normally
those that are referenced most frequently, are needed for legal and administrative purposes, and
which will have the longest retention. Other documents that support the official case file are
maintained separately in a case working file. These records will normally have a shorter
retention and may be stored off site because they are not used as frequently. It is important to
note that case working files are records and cannot be destroyed without an approved records
schedule.
Answers to these questions are best developed in work groups made up of program staff,
administrative staff, program managers, and legal staff so that all documentation requirements
are adequately addressed. In programs where active records are held by the program staff, it is
necessary for all to agree to the recordkeeping requirements so that they are consistently
implemented by everyone.
Step 5. Applying Technology to Records Management
People frequently turn to technology because they find they can't manage their paper records.
Either they are swamped by too much paper on site, or they can't find the documents they need,
or both. By itself, technology cannot fix a records management problem; technology applications
need a lot of research and planning to be effective. The old saw is true: if you try to automate a
records management mess, you will have an automated mess.
However, technology, even simple technology, can make a basically sound records management
system operate better. Let's look briefly at a number of technological "fixes" and the types of
problems they can help remedy.
43
Before You Cut the PR...
There are two steps to take before rushing out to buy any hardware or software. These steps are
equally valid if you are looking to improve a cabinet of branch correspondence files or the
management of millions of Superfund documents. The scale may be different, but the steps are
the same.
First, take the time to:
 Study the current situation.
 Identify user needs and requirements.
 Diagnose the current problems.
 Analyze what could be done to meet the needs and correct the problems.
 Plan what a new system should accomplish.
Second, examine whether a simple change in how you currently do business can remedy the
problem. In many cases, improving the manual system can either solve the problem or at least
allow you to focus the technology application on improving specific aspects of the records
system. Examples of "manual solutions" to records problems are provided below.
However, simple fixes don't always resolve the problem, and in many cases, such as the
Superfund program, the sheer volume of records and the special problems they pose mandate the
program go beyond a well run manual system to implement solutions.
Types of Technology Applications
There are several basic types of technology applications that can help you manage your records.
 Specialized filing equipment to improve the storage and retrieval of records
 Document conversion technology such as optical imaging and microform to reduce the
volume of paper on site and allow more efficient workflow
 Document indexing software to allow for retrieval of documents in multiple ways
 Document tracking and control systems to enable you to track documents or folders from
creation to final disposition
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 Special purpose programs that allow you to automate specific aspects of records
management such as records schedules or retiring records to a Federal records center
(FRC)
 Software to allow for storage and retrieval of electronic documents
 Electronic forms programs to improve workflow and increase the usability of information
contained on the forms
Matching Technology to Problems
Let's look at our two typical records management problems and see what types of solutions
technology offers.
Too Much Paper!
Manual Solutions:
 Retire older records to the FRC.
 Destroy older records based on the records schedules.
 Separate nonrecord material from records.
 Separate working files from final documents.
Better Filing Equipment

If reducing paper volume can't solve the problem, something as simple as better filing equipment
may help you to manage the volume better. People normally jump to the conclusion that they
need compact (movable) shelving, but other options such as open shelving, lateral files and
specialized folders, powered filing cabinets, and filing cabinets specifically designed to handled
specialized media or oversized documents may allow you to fit more documents into existing
space.
Media Conversion:
Conversion of the existing paper to microform or optical images allows you to maintain the
largest volume of documents in the least space. However, conversion is expensive, and you need
to be sure you've studied the records so that:
 You are only converting the documents you need, and
 You have an approach to indexing those documents that allows you to retrieve them
efficiently.
45
Microfilm is a good medium to choose if you need to convert records which have a permanent
retention. Many offices are successfully imaging documents. For example, the Superfund
program is using the Superfund Document Management System (SDMS) to image site file and
administrative record documents. Since the documents have been captured electronically, it is
easy to move the images to a CD-ROM to fulfill requests from the public.
Both microfilm and imaging take considerable planning. The final caveat is that, generally, it is
not cost effective to convert documents to digital images just for the purposes of storage. To
justify the cost, the conversion needs to improve the way you process and manage those
documents.
I Can't Find What I Need
The second major problem most records managers face is the inability to find the information
they need when they need it. This can result from two basic causes:
 Not having sufficient information about the documents to locate them efficiently, or
 Not having sufficient security to ensure they will be where they are supposed to be when
needed.
Manual Solutions:
Basic manual solutions include:
 Establishing a file plan and following it.
 Improving filing techniques.
 Cross referencing of documents.
 Improving physical security.
 Using charge out cards.
Document Indexing:
Document indexing is the easiest way to improve your ability to locate the records you need. For
major records series such as premanufacturing notices or Superfund administrative records,
indexes may run to 15 to 30 fields, or more. But, indexing need not be terribly complex to be
useful. An index that includes addressee, date, file code, and subject would solve many records
management problems and simplify filing.
46
Document Tracking and Control:
Everyone complains that documents or folders "disappear" from the files and can't be located.
Control of documents throughout their lifecycle is first of all a matter of establishing procedures
and enforcing them. Even the most sophisticated automated tracking system won't work if staff
are free to remove documents from the file room at will. However, records management software
and/or bar coding systems can provide an excellent means of tracking documents once
procedures are in place.
Additional Technology Applications
In many cases, records managers need help in managing their own information.
 What records have been retired to the FRC?
 Where are those records scheduled?
 How can I make records management procedures available to everyone?
Technology can help solve these questions too.
Special Purpose Programs:

There are several areas where automation of one or more phases of the lifecycle can simplify
records management tasks. For example several offices have developed an "automated SF 135"
form to retire records to the Federal Records Centers.
Document Distribution:
Providing increased access to information is one place where technology offers a number of
options. In looking at the dissemination of records schedules, for example, use of EPA's Internet
site has dramatically cut the need for distribution by paper or diskette. Another useful technology
for distribution is CD-ROM.
Workflow:
Workflow software is used to automate business processes where electronic information or
documents can be passed from person to person for action. EPA is currently using the E-Forms
system to process selected forms.
Imaging:
Paper documents are converted to digitized (computer readable) form. An imaging system allows
for electronic capture, storage and retrieval of documents. The Superfund Document
Management System (SDMS) used in all the EPA regions is one example of an imaging system.
47
Electronic document management:
An electronic document management system is software you can use to store and retrieve
electronic documents. An "integrated" system may use one or more technologies such as imaging
and workflow. The Immediate Office of the Office of Air and Radiation is in the process of
doing a pilot project using an electronic document management system.
Records management application:

A records management application (RMA) is software which can manage records throughout
their lifecycle. It can be used to categorize and locate records as well as dispose of the electronic
records maintained in its repository when they are due to be destroyed according to an approved
records schedule. EPA is in the process of determining requirements for an Agency-wide RMA.
Don't Reinvent the Wheel
Most of the technology applications discussed above are operational in one or more Agency
offices. To find out more about where a specific applications is being used, contact the National
Records Management Program.
Step 6. The Procedures Manual
Congratulations! You're almost there.
If you've followed along with the first five steps to better files, you should have seen a marked
improvement in your program's files. Now is the time to crystallize all of your improvements in
the form of a records management procedures manual. Creating the manual is not just a
paperwork exercise. It provides the basis for a consistent program for records management that
will become part of the regular ongoing office routine.
Manual Contents
The National Records Management Program has many examples of program manuals; they are
all different, and they should be. The audience for the manual is program staff, so it must meet
their needs and program culture. Therefore, the records manager must look first to his or her
program in deciding what information to include and how to structure it. However, there are four
elements common to most manuals:
 Background information on records management
 General procedures
 Information about specific records
48
 Reference materials
A sample table of contents for a Records Management Manual incorporating these topics is
included here.
Sample Contents for a Program Specific

Records Management Manual
I. Introduction
o Purpose of the Manual
o Purpose of Records Management
o Records Management Laws and Regulations
o Agency Records Management Policy
o Staff Responsibilities
II. Records Management Procedures in the Office
o Records Creation
 When do you create records?
 What must you do with the records you create?
o Records Maintenance and Use
 Filing procedures
 Records circulation and control
 Information security
o Records Disposition
 Records cleanup
 Disposing of records
 Retiring records to the Federal Records Center
o Special Media
49
 Electronic records
 Audiovisual records
o Maps and Drawings
III. File Plan and Records Identification
o Overview of Major File Plan
o Listing of Major Records Series
 Description of records
 Recordkeeping requirements
 Custodians
 File plans
 Disposition
 Identification of nonrecord collections
IV. Appendices
o File Plan
o Sample Forms
o Glossary
Background Information
The manual should include at least a short introduction that reviews for staff:
 The purpose of the manual
 Goals of the records management program
 An overview of the basic regulations and policies
 Staff responsibilities
50
This section is meant to be short. The goal is to provide staff with the information they need to
do their jobs, not to replicate all Federal and Agency records management policies. It simply
provides context for the meat of the manual which comes in the following two sections. What's
more, most of the contents can be gleaned from existing publications. See "Make It Easy on
Yourself" at the end of this section.
Procedures
The second major area to be addressed is procedures for managing the records. The formats for
presenting this information are endless. We've chosen to model it on the lifecycle of records.
Records creation covers the definition of a record, the importance of creating the "right" records;
and alerts staff to what they must do when they create records (e.g., make a copy of all outgoing
correspondence for the unit file). The section might also cover topics such as types of records
(program, administrative, case files, etc.), personal papers and working files, recordkeeping
requirements, and other "theoretical" issues you feel are important or meaningful to the staff.
The section on maintenance and use should discuss general filing procedures. Examples include:
 File cut-off procedures
 Who is responsible for adding document filing information
 Where records are to be put for filing
Circulation and control procedures (e.g., always use charge cards if you remove anything from
the files) are a must and should be included, as should any program specific procedures for
handling sensitive information.
The third component of the procedures section concerns records disposition and should provide
detailed guidance on how staff should go about disposing of records, including information on
what they can destroy, how to retire records to a Federal records center, cleanup days, and
similar issues.
Finally, include information on managing electronic records and other special media such as
audiovisual and cartographic items if the office creates such records. This may be woven into the
regular discussion or handled separately. Information on managing such records is available
from the National Archives and Records Administration (NARA) guides.
Records
The third major section of the Manual should provide staff with all the information they need to
manage the specific records created in their program. Following a general discussion of the
51
program's file plan, we recommend a series by series discussion of the records found in the
program.
If there is a separate entry for each series, with all of the information necessary to manage those
records in one place, staff can easily find and use the information that pertains to the records they
create without having to comb the entire manual.
For each series, provide a description of the records, the recordkeeping requirements,
arrangement, the location of the records and the custodians, and filing and disposition
information. Some programs include additional information such as sample file labels for each
series. Most of this information should be available from your records inventory and the records
schedules. Be sure to include information about no-records so staffs are clear about what to do
with such collections.
Appendices
Finally, provide copies of documents that the staff may need for reference. The ones most often
included are the program file plan, copies of forms such as a SF 135 or a charge out card, laws
and regulations, and a glossary of terms.
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TVET PROGRAM TITLE: Accounts and Budget Support Level –III

MODULE TITLE: Preparing Matching and Processing Receipts

At the end of this module the trainer will be able to;

LO1: Receive, identify and record receipts

 A written acknowledgment of having received, or taken into one's possession, a specified

Money is received in three ways:

• Directly by cheque or bank transfer.

• At the mill on open days, Saturday mornings or when milling/bagging

• Off‐site at talks, fairs, etc.

Recording and Depositing Cash Receipts

Use of RIF (Receipt Identification Form)

 currency and coin

Do not use RIF to record:

 receipt of grant or contract funds.

Returns of Payroll Overpayments

To process a return of a salary or benefits overpayment:

2. Complete a Payroll Payment Adjustment Form.

Repayments of Accounts Payable Charges

 a refund check for an order that was reduced or canceled

 repayment of an outstanding travel or expense advance.

The Accounts Payable Department will enter all such repayments.

To process a repayment of an Accounts Payable charge:

1. Prepare a memo to Accounts Payable that includes:

 the PTAEO where the credit should be applied

2. Attach the following:

3. Hand deliver to Accounts Payable, 344 Winchester.

Gift Income Received in the Department

Prepare and Deliver the Deposit

Income is recorded under five main headings:

• Donations ‐ money received for talks is treated as a donation.

• No pages may be removed from the receipt book.

3. Deposit Slips. The Secretary will deposit corporate funds as follows:

• Prepare a deposit slip in duplicate.

LO2. Match receipts to documentation

This section discusses:

 Informal receiving process.

Informal Receiving Process

Formal Receiving Process

 Taking physical receipt of items.

Reviewing Journal Entries for Receipt Transactions

 Review journal entries for receipt transactions.

Understanding Journal Entry Review for Receipt Transactions

Selects qualified batches of unposted transactions from the F0911 table.

Edits and verifies each transaction.

Posts accepted transactions

Marks each transaction and batch header as posted

Updates the amount relieved for non-stock items.

 Original order quantity.

Understanding Purchase Receivers

 Original purchase order information.

You might need a purchase receiver to:

 Review purchase order information for incoming goods.

 Set processing options for Receipts

Understanding Receipt Information

 Update item quantities and costs in the Inventory Management system.

Each time you receive an order, the system:

 Creates a receipt record Updates item quantities (availability and commitment)

Entering Receipt Information

Pricing and Re-pricing at Receipts

Understanding Receipt Information Printouts

o Original order quantity.

Information for this report prints in this order:

o Item number or account number.